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Omega Flex (OFLX)
NASDAQ:OFLX
US Market

Omega Flex (OFLX) AI Stock Analysis

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OF

Omega Flex

(NASDAQ:OFLX)

66Neutral
Omega Flex's overall score reflects its solid financial position with strong cash flows and no debt, despite the challenges of declining revenue and margin pressure. While technical analysis indicates bearish momentum, the stock's moderate valuation and high dividend yield provide a counterbalance, appealing to long-term and income-focused investors.

Omega Flex (OFLX) vs. S&P 500 (SPY)

Omega Flex Business Overview & Revenue Model

Company DescriptionOmega Flex, Inc. is a leading manufacturer in the flexible metal hose and braid sector, primarily serving diverse markets including residential, commercial, and industrial applications. The company's flagship product, TracPipe, is widely recognized for its durability and flexibility, offering innovative solutions for gas piping systems. Omega Flex operates within the broader manufacturing industry, focusing on the development and production of high-quality flexible metal hose products that cater to a variety of customer needs globally.
How the Company Makes MoneyOmega Flex, Inc. generates revenue through the design, manufacture, and sale of flexible metal hose and braid products. The company's primary revenue stream is its TracPipe line, which is extensively used in gas piping systems across multiple sectors, including residential, commercial, and industrial markets. Omega Flex leverages its robust distribution network and strategic partnerships with distributors and wholesalers to effectively reach its target customers. Additionally, the company's focus on innovation and quality ensures a competitive edge, allowing it to maintain and grow its market share, thereby contributing significantly to its earnings.

Omega Flex Financial Statement Overview

Summary
Omega Flex demonstrates solid financial health with strong cash generation and a debt-free balance sheet. While margins are under some pressure and revenue has been declining, the company remains profitable and efficient in managing its resources.
Income Statement
72
Positive
Omega Flex's revenue has decreased over the past two years, highlighting a challenging market environment. The gross profit margin remains strong at around 61% to 65%, indicating cost management is effective. However, the declining net profit margin from 20.5% in 2021 to 17.7% in 2024 suggests some pressure on profitability.
Balance Sheet
85
Very Positive
The company maintains a solid balance sheet with no debt as of 2024, showcasing strong financial stability. The equity ratio remains robust, indicating a high proportion of assets funded by equity. Return on equity is healthy, albeit slightly declining, reflecting consistent value generation for shareholders.
Cash Flow
78
Positive
Omega Flex shows strong operating cash flow, consistently exceeding net income, which indicates high-quality earnings. The free cash flow has been stable, though the growth rate has been slowing, suggesting less reinvestment in the business. The free cash flow to net income ratio remains favorable, supporting capital allocation flexibility.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
101.68M111.47M125.49M130.01M105.80M
Gross Profit
62.26M68.36M78.31M81.53M66.55M
EBIT
21.57M25.80M31.02M35.06M26.65M
EBITDA
21.57M26.90M32.11M36.08M27.47M
Net Income Common Stockholders
18.01M20.76M23.62M26.20M19.91M
Balance SheetCash, Cash Equivalents and Short-Term Investments
51.70M46.36M37.70M32.91M23.63M
Total Assets
105.89M100.23M97.68M88.92M71.57M
Total Debt
5.28M2.95M3.21M3.37M499.00K
Net Debt
-46.42M-43.41M-34.49M-29.54M-23.13M
Total Liabilities
22.71M21.38M26.51M28.37M25.19M
Stockholders Equity
4.85M78.69M70.98M60.35M46.12M
Cash FlowFree Cash Flow
18.85M21.78M14.30M24.18M18.75M
Operating Cash Flow
20.86M23.42M15.25M25.15M19.31M
Investing Cash Flow
-2.01M-1.64M-942.00K-971.00K-564.00K
Financing Cash Flow
-13.53M-13.12M-9.49M-14.87M-11.31M

Omega Flex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price31.04
Price Trends
50DMA
35.25
Negative
100DMA
38.59
Negative
200DMA
43.59
Negative
Market Momentum
MACD
-1.63
Negative
RSI
43.50
Neutral
STOCH
76.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFLX, the sentiment is Negative. The current price of 31.04 is below the 20-day moving average (MA) of 31.84, below the 50-day MA of 35.25, and below the 200-day MA of 43.59, indicating a bearish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFLX.

Omega Flex Risk Analysis

Omega Flex disclosed 23 risk factors in its most recent earnings report. Omega Flex reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Omega Flex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$100.34M13.9015.52%-1.02%-7.87%
GHGHM
69
Neutral
$343.88M37.828.41%11.22%229.35%
69
Neutral
$96.33M10.186.42%2.35%9.23%-16.27%
66
Neutral
$313.33M17.6222.27%4.35%-8.78%-13.24%
64
Neutral
$274.69M14.678.47%5.19%-3.23%
63
Neutral
$274.63M6.1513.81%2.59%-0.21%348.28%
63
Neutral
$4.27B11.405.38%214.75%4.10%-8.98%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OFLX
Omega Flex
31.04
-34.30
-52.49%
GHM
Graham
31.54
3.20
11.29%
PKOH
Park-Ohio Holdings
19.30
-4.83
-20.02%
TAYD
Taylor Devices
31.99
-20.95
-39.57%
TWIN
Twin Disc
6.81
-9.30
-57.73%
LXFR
Luxfer
10.02
0.50
5.25%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.